Latest Stories

Federal Courts to Stay Open Through Oct. 17

The
federal judiciary announced on Thursday that federal courts
will remain open through Thursday, Oct. 17, unless the
government shutdown is resolved and court funding is restored
before then.

When the federal government first shut
down on Oct. 1, the federal judiciary estimated that between
fees and federal appropriations that were not tied to a
particular fiscal year, the courts could afford to stay open
for 10 business days (i.e., until Oct. 14). However, the
federal judiciary has curtailed its spending, allowing a few
extra days of operation.

While the courts have
remained open, it has not been “business as usual,” according
to the federal judiciary, because many U.S. attorneys and
other Justice Department employees have been furloughed. As a
result, U.S. attorneys have been instructed by the Justice Department to
curtail or postpone civil litigation, and they have made
numerous motions for stays of litigation.

In cases
where a U.S. attorney’s request to postpone litigation is
denied by the court, the litigation becomes an “excepted
activity” that the attorney can continue to work on during the
shutdown.

Criminal litigation has not been affected.

Individual federal courts have reacted in different ways.
In the Southern District of New York, all pending civil
litigation has been stayed by judicial order until Justice Department
funding is restored. The U.S. Court of Federal Claims, on the
other hand, is continuing “to hear and decide cases without
interruption” and does not expect to issue continuances.

The Tax Court announced on Oct. 1 that it was shutting down
that day, and it has subsequently canceled all trials that
were scheduled to begin Oct. 7 and 8 in various cities around
the country.

The winner of The Tax Adviser’s 2014 Best Article Award is James M. Greenwell, CPA, MST, a senior tax specialist–partnerships with Phillips 66 in Bartlesville, Okla., for his article, “Partnership Capital Account Revaluations: An In-Depth Look at Sec. 704(c) Allocations.”

Magazine

Don’t get lost in the fog of legislative changes, developing tax issues, and newly evolving tax planning strategies. Tax Section membership will help you stay up to date and make your practice more efficient.